How the accounts are being used?
A: They are used for remote PowerShell into O365, creation of objects.
How they are created?
A: They are created with a random password.
Are they created with a password? If so how long is the password?
A: The length of the password is 14 characters and consists of upper/lower/numbers/symbols.
If those accounts have MFA on them will they still work?
A: Multi-factor Authentication (MFA) will likely cause the accounts to fail to logon.
Additional Information
Directory Sync utilize the delegated permission to access the source/target tenant, hence the product will utilize these PowerShell Service account to read/create objects.
The permissions needed are Teams Administrator, Exchange Administrator and User Administrator roles. We need these roles to read, create and modify Users, Groups and Teams objects and also their mail attributes.
These service accounts are created automatically using the OAuth token granted by their Admin during project creation or when they configure the environments in Directory Sync.